Malta’s remote gaming success story

The Remote Gaming industry has quickly become one of Malta’s major economic successes. The numbers speak for themselves - there have been over 500 applications for a Malta Gaming Licence with the Malta Gaming Authority, with about 300 being already licensed. It is predicted that Malta could soon become the leading gaming jurisdiction in the world. The government revenue in tax from the remote gaming industry is over €25 million annually, with this figure increasing every year. The industry also employs a constantly increasing number of people, both local and foreign.

Malta’s success in this industry is attributed to the country’s clear regulatory framework, which safeguards the interests of both operators and players, its attractive fiscal regime, an efficient and relatively inexpensive gaming licence process with licence fees being transparent and known in advance and an established financial services institution, including payment gateways. In addition, Malta offers an educated workforce and a pleasant living environment with a favourable climate.

These facts demonstrate that the financial stakes of the industry are high. In November last year, the member countries of the European Economic Area (EEA), of which Malta is a member, signed an agreement intended to enhance the cross-country cooperation to tackle challenges of online gambling. The agreement between the regulatory bodies of the EEA is an attempt to curb money laundering, protect privacy and tackle gambling addictions.

The cooperation agreement will contribute to addressing matters of common interest across the member states. It covers the organisation of gambling businesses, such as tender procedures, verification of information provided by other authorities, and exchange of technical expertise. 

It also deals with the supervision of compliance with national laws, including the protection of consumers, prevention of money laundering and fraud, and betting related to match-fixing. It offers a platform for practical cooperation to assist the authorities in their day-to-day supervisory function and for sharing of best practices. Through this agreement the Gaming Authorities commit to sharing information with each other on a voluntary and proactive basis on matters of mutual interest such as market data, new games, results of studies and surveys, and international issues.

In regard to personal information, the authorities have also undertaken to ensure there are appropriate measures in place for the secure transmission and storage of the exchange of information. This arrangement does not amend or supersede any law or regulation within the jurisdiction of the separate authorities, nor does it affect other existing or future administrative cooperation arrangements between the authorities.

Malta has a number of best practices to share with other authorities. For example, Malta requires a  gaming company to carry out the necessary KYC (Know Your Client) checks before accepting players. This involves checking the IP address, and a copy of the player’s identity card or passport. The operator must check the authenticity of the ID documentation against the IP address. Operators are not obliged to turn away players from countries that are on the Financial Action Task Force (FATF) sanctions list, however it is in their interest to do so. 

The Malta Gaming Autority carries out due diligence on operators and their employees, and enhanced due diligence on directors, shareholders, and ultimate beneficiary owners, who must pass a ‘fit and proper’ test.

From an industry perspective, Malta is a huge success story. However nothing is perfect.

Gambling addiction

Despite all the economic and financial benefits of the industry, one cannot ignore the fact that irresponsible gambling could become a serious social problem. Gambling addiction, if left unchecked, could ruin relationships and create disruption in families. For this reason, it is reassuring to see the work of the Responsible Gaming Foundation, which in September last year launched its National Helpline 1777, providing round the clock support to individuals experiencing gambling addiction. The Foundation is also present on Facebook at RGFMalta. 

This Gaming Supplement, which is quickly becoming a regular feature of MaltaToday, attempts to keep readers abreast of developments in this fast-paced and fast-changing industry. We feature the major players that have quickly established themselves in Malta: Leovegas, Portomaso Gaming, Dragonara Casino, Platin Gaming, BMIT, TIPBET, Casumo Gibraltar, Betson, Clairion Events, Nexus and Betting Malta. We also present some of the trends and upcoming events of interest to the gaming industry.